The average long-term US mortgage rate edged up to 7.18% this week, where it stood two weeks ago
The average long-term U.S. mortgage rate edged up this week, pushing up borrowing costs for prospective homebuyers already facing a housing market limited by a dearth of homes for sale and rising prices
LOS ANGELES — The average long-term U.S. mortgage rate edged up this week, pushing higher the borrowing costs for prospective homebuyers already facing a housing market limited by a dearth of homes for sale and rising prices.
The average rate on the benchmark 30-year home loan rose to 7.18% from 7.12% last week, according to Mortgage buyer Freddie Mac on Thursday. A year ago, the rate averaged 6.02%.
The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, fell to 6.51% from 6.52% last week. A year ago, it averaged 5.21%, Freddie Mac said.
High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already unaffordable to many Americans. They also discourage homeowners who locked in low rates two years ago from selling.
Mortgage rates have been climbing in recent weeks, echoing moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans.
The yield, which three weeks ago neared its highest level since 2007, has been hovering above 4% since August as bond traders weigh whether recent economic data increase the likelihood that the Federal Reserve will decide it needs to keep interest rates higher for longer to lower inflation.
On Thursday, traders pared back expectations for the Fed to raise rates again some time this year, though they’re still betting on a nearly 42% chance of that, according to data from CME Group.
The yield on the 10-year Treasury note was trading at 4.28% midday Thursday.
“Mortgage rates
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